Switzerland scraps franc's cap against euro

Zurich stocks drop 11%, franc rises 30%

(ANSA) - Rome, January 15 - Switzerland on Thursday scrapped its franc's cap against the euro, sending markets into a tailspin.
    The Swiss franc soared some 30% in chaotic trade and the Zurich stock market plummeted more than 11%.
    The Swiss National Bank said the cap, introduced in September 2011, was no longer justified. The central bank also reduced a key interest rate from -0.25% to -0.75%, increasing the amount investors have to pay to hold Swiss deposits.
    The Swiss franc went from 1.20 to the euro to 0.8052 following the SNB move. Stock markets around Europe plunged with investors buying 'safe haven' assets such as gold and German bonds.


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